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The Caribbean Development Bank (CDB), the Central American Bank for Economic Integration (CABEI), and the Development Bank of Latin America and the Caribbean (CAF) have signed landmark Exposure Exchange Agreements (EEAs).
CABEI (rated AA) and CAF (rated AA) signed a US$700 million EEA, while CDB (rated AA+) and CABEI executed a US$450 million EEA.
These agreements mark a significant step toward strengthening capital positions, enhancing financial resilience, and advancing sustainable development across Latin America and the Caribbean.
These transactions are the first of their kind between Multilateral Development Banks (MDBs) rated below AAA and regional MDBs.
These agreements highlight CBD, CABEI and CAF’s financial strength and growing strategic alignment and provide additional lending headroom for member countries
According to the press release, the agreements followed the recommendations of the G20’s Capital Adequacy Framework report, which reflects a broader effort within the MDB community to adopt innovative financial instruments that improve balance sheet efficiency and increase development impact..
The EEAs will support infrastructure, energy, and social development projects throughout Latin America and the Caribbean, and promote regional cooperation and improved capital efficiency.
CDB’s President Daniel Best emphasised that the EEA aligns with his vision to “innovate” by introducing forward-looking capital solutions that enhance CDB’s ability to deliver sustainable and impactful development financing to its member countries.
CABEI President Gisela Sánchez highlighted the collaborations with CAF and CDB reinforced CABEI’s role as a catalyst for regional integration and sustainable development, marking a significant step toward improving the lives of millions in Central America, the Caribbean, and beyond.
CAF President Sergio Díaz-Granados noted that the EEAs enhance the bank’s capacity to issue new loans to member countries, financing critical infrastructure, energy transition, and social development projects.
“These are the types of partnerships we need to drive sustainable development in the region,” he stated.
The press release concluded by saying, the institutions have positioned themselves as leaders in modernising development finance, demonstrating their commitment to impactful, collaborative solutions that strengthen operational capacity to drive sustainable growth and resilience across Latin America and the Caribbean.
